Makin A Splash All Summer
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How Stable Is Tropical Smoothie Franchise Development Corporation
The FDDs raise a few additional red flags. The first is the financial stability of the franchisor, Tropical Smoothie Franchise Development Corporation. The 2011 Tropical Smoothie Cafe FDD states:
The 2012 Tropical Smoothie Cafe FDD states:
OUR DECEMBER 31, 2011 AUDITED FINANCIAL STATEMENTS SHOW THAT WE HAD A RETAINED EARNINGS DEFICIT OF $4,702,096 AND A DEFICIT IN SHAREHOLDERS EQUITY OF $4,518,661
Not only does that indicate that the franchisor appears to be in poor financial shape, but that it worsened by nearly $1.5M from 2010 to 2011. Minnesota requires the escrow of franchise fees due to the Franchisors financial condition.
How Much Does It Actually Cost To Open A Tropical Smoothie Cafe
Are you interested in owning a healthy franchise business? A Tropical Smoothie Cafe could be the right franchise for you. With a wide variety of smoothies, wraps, sandwiches, salads, and flatbreads, Tropical Smoothie Cafe is a favorite among customers looking for a good-for-you meal or middle of the day pick me up.
In fact, all the franchises smoothies are handcrafted using select blend of fruits and vegetables. If youre looking for a business motivated by health, nourishment, and encouraging an active lifestyle, the Tropical Smoothie Cafe could be an investment match.
How much will it cost to open a Tropical Smoothie Cafe? Youll need approximately $200,000 $570,00o to open a retail shop. Youll also need liquid capital of $125,000 and a net-worth of $350,000 to qualify. This is a lot of money, but not as large of an investment as you would need to participate in other franchise opportunities like Burger King that requires a net worth of $1.5 million to be considered.
Its important to note these the initial costs youll need to get your business started. There may also be additional fees that are not accounted for in these numbers that depend on the location or type of store you want to open.
Heres a breakdown of the ongoing fees and costs required to own a Tropical Smoothie Cafe:
|Type of Fee|
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How Much Is Tropical Smoothie Cafe Worth
The destination is Florida in the U.S. It is worth 500 million dollars. In the United States, Tropical Smoothie Cafe, also known as Tropical Smoothie, or Tropical, is a restaurant franchise. The cafes also offer sandwiches, wraps, salads, flat breads, and bowls, and are working on adding sandwiches in 2018.
Ceo Shares His Story & Insights On Taking The Reins
Amid all the pandemic news and stories of how the foodservice business is coping with the crisis, I thought I’d attempt to redirect our attention today, even if only for a short while. As a 35 year veteran of the restaurant and franchise industry, I have always been fascinated by the challenges, risks, rewards, and day to day “work” a CEO faces when first taking the helm of an ongoing franchise organization. Today’s post focus’ on that topic in an interview with Charles Watson, the CEO of Tropical Smoothie Café.
Mr. Watson was appointed the CEO position of Tropical Smoothie Cafe in December 2018. Since that time, he has led the company on its quest towards $1billion in sales by 2023. He’s no stranger to franchise development, nor is Charles Watson an outsider, having served four years as the company’s Chief Development Officer in addition to his prior role as VP of Franchise Development. He is directly responsible for selling more than 800 franchises.
As their franchise website states: “Tropical Smoothie Cafes menu boasts bold, flavorful smoothies with a healthy appeal, all made-to-order with quality ingredients. We find that real fruits, veggies, and juices just taste better.”
The offerings have evolved over the years to include a menu of breakfast and lunch items beyond smoothies. From wraps to flatbreads to salads, Mr. Watson continues to solidly position Tropical Smoothie Cafe as a leader in the fast-casual, healthier lifestyle food category.
About Charles Watson:
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Section V Financial Performance Representations And Analysis
- The following tables provide historical sales information for Tropical Smoothie Cafe franchised restaurants that were open at least one full year as of: the calendar year 2019 for 652 Restaurants the calendar year 2018 for 569 Restaurants and the calendar year 2017 for 485 Restaurants.
- The tables do not include any financial performance information for any other types of franchises, such as non-traditional locations or seasonal locations, and do not include any franchises of any type that had not been open for at least one year on December 29, 2019, December 30, 2018, and December 31, 2017, respectively.
- The information presented is not a forecast of future potential performance.
- For purposes of the tables below, Net Revenue means all revenue related to the sale of products and performance of services at the Restaurant, whether cash or credit, and regardless of collection in the case of credit, and income of every kind or nature related to the Restaurant, less any discounts. Net Revenue does not include bona fide refunds to customers, revenues from sales taxes or other add-on taxes collected from customers by you and actually transmitted to the appropriate taxing authority, sales of used equipment not in the ordinary course of business, or sales of gift cards or similar products .
- The tables provide the average and median net revenues for the following categories of Restaurants in 2019, 2018, and 2017 on a category and cumulative basis:
What Is The Average Salary Of Tropical Smoothie Franchise Operator
Tropical Smoothie Franchise Operators earn $60,000 annually, or $29 per hour, which is 12% lower than the national average for all Franchise Operators at $68,000 annually and 10% lower than the national salary average for all working Americans. The highest paid Franchise Operators work for Snap-on at $71,000 annually and the lowest paid Franchise Operators work for Back Yard Burgers at $60,000 annually.
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Fdd Talk: How Much Does A Mcalisters Deli Franchise Make
In this FDD Talk post, youll learn the following: Section I Background information on the McAlisters Deli franchise opportunity, including relevant news updates Section II Estimated initial investment for a McAlisters Deli franchise, based on Item 7 of the companys 2021 FDD Section III Initial franchise fee, royalty fee, marketing fee, and
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What Is The Franchise Fee For Chick
$10,000Chick-fil-A has a distinct franchise business model. The franchise fee to join Chick-fil-A is a very accessible $10,000. Chick-fil-A corporation will pay for land, construction and equipment for a restaurant, then rent it to the franchisee for 15% of sales plus 50% of pretax profit remaining.
How do I start a tropical smoothie franchise?
To buy a franchise with Tropical Smoothie Cafe, youll need to have at least $125,000 in liquid capital and a minimum net worth of $350,000. Franchisees can expect to make a total investment of $198,500 $543,500. They also offer financing via 3rd party.
How much does it cost to own a tropical smoothie?
How much does it cost to open a Tropical Smoothie Cafe? A new Cafe investment is between $257,500 and $560,500. Costs vary by location, and the average cost is approximately $375,000.
Does Tropical Smoothie offer military discount?
Tropical Smoothie Cafe®, A Franchise for Veterans. By offering a 50% discount on the franchise fee to veterans opening their first franchise with us, our growth rate for veteran-owned units has grown by 150% since 2013, and we plan to remain military-friendly by creating more opportunities for veterans in the future.
How much money does tropical smoothie make?
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Tropical Smoothie Cafe Franchise Opportunities
Tropical Smoothie Cafe, sometimes referred to as Tropical Smoothie, or TSC, is a restaurant franchise in the United States. Tropical Smoothie Cafe, LLC was founded in 1997 and is based in Atlanta, Georgia.In addition to smoothies, the cafes offer sandwiches, wraps, salads, flat breads, and introduced bowls to their food line in 2017. Tropical Smoothie Cafe operates more than 650 locations nationwide with 2,000 projected openings across the United States by 2024.
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Why Consider Tropical Smoothie Cafe Franchise
More often than not, prospective franchisees want to find out what a franchise opportunity holds before making a decision.
For the Tropical Smoothie Cafe franchise, there are several. These range from its opportunity, demand, its menu offerings as well as its ease of operation.
Lets focus on each of these, shall we?
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Tropical Smoothie Cafe Review
This brands first cafe was opened in 1993 in Florida, and since 1997 they have offered franchise opportunities for investors who want to start a business under the framework of this company. Today, this company is one of the faster-growing brands in the Smoothie Industry, and they make a lot of effort to attract new franchisees.
Tropical Smoothie Cafe is a medium-cost franchise and can be a good franchising opportunity for rookie entrepreneurs who have the necessary investing funds but dont dare to start an independent business venture. To become a candidate for the owner of the Tropical Smoothie Cafe applicant must have a Net Worth of $350,000 and own a Liquid Capital in the amount of a minimum of $125,000.
This franchisors Initial training is very comprehensive, it lasts approximately 250 hours, and primarily it takes place on the already existing franchise, which means that on an opening day franchisee will have the knowledge to run everyday business operations without any significant problems.
It is anticipated that the Return of Investment for this franchised business will be three years because, on average, the Tropical Smoothie Cafe franchises yearly profit is approximately $126,000. Also, the Franchise Agreement has 15 years duration, so the franchisee can plan a long-term future in partnership with this company.
How Much Does A Smoothie King Owner Make
Smoothie King franchisees earned a collective $593,329 in sales over the past year, or 75% of total franchisee sales. This figure represents how much initial investment is estimated. With the purchase price of a Smoothie King franchise being as high as $858,000, starting a location requires less capital.
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What Do You Think
Are you familiar with the Tropical Smoothie Café franchise opportunity?
What do you think accounts for the SBA loan failure rate of Tropical Smoothie Café franchise owners?
What steps should Tropical Smoothie Café be taking to stop further franchise failures?
Has Tropical Smoothie Café taken serious action to address the problems that led to these loan failures?
Please share a comment or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE TROPICAL SMOOTHIE CAFE FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR TROPICAL SMOOTHIE CAFE FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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Advantages Of Tropical Smoothie Cafe Franchise
One of the many advantages of owning a Tropical Smoothie Cafe is the in-depth training managers, owners, and employees go through. After you pay the training fee, you will be able to access the TSC LLC systems, technology, operational support, and Internet services. In addition to these technological resources, you will attend a four-week training program near one of the TSC outlets. This training will include experience in the franchise, learning the ins and outs of the menu and business model, as well as marketing techniques.
Next, youll graduate to a one-week classroom training at the Support Center in Atlanta, Georgia, and continue on to a ten-day onsite training at your very own franchise. If youre surprised by the sheer volume of training days, do not be alarmed this is TSC LLCs way of supporting you to the utmost degree in making running your business easier than ever.
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In fact, you wont even need to handle the menu creation and marketing support TSC LLC will do that for you. In addition to hands-on help from TSC employees, the company will make sure that your equipment is easy-to-use. Deep fryers, hooding systems, and stoves will be installed without complicated fixtures making it easier to focus on preparing fresh food in a timely manner.
A fresh berry smoothie.
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Is Owning A Tropical Smoothie Profitable
As of 2019, Tropical Smoothie Cafe franchises made an average of $982,486 in gross sales, according to data collected by franchise research firm FranchiseScout. Despite the fact that there is no guarantee that you will achieve this level of gross sales, it is comforting to know that there are many outlets who achieve this level of financial achievement.
Tropical Smoothie Cafe 159 Carondelet Plaza Clayton Mo Clayton Mo 63105
CAN YOU DELIVER AMAZING?Signing bonus of $500 to be paid after 3 months of employment!CAFÉ GENERAL MANAGER ESSENTIAL FUNCTIONS
- Restaurant Manager sets and achieves the highest standard in all areas of restaurant operations including the employee experience, the customer experience, and financial results.
- He/she will be responsible for supervising shift leaders and front-line crew members at an assigned store. The responsibilities of this position will require the RM to be on their feet during hours worked.
- Operational Leadership– Leading the team at an assigned location in successful day-to-day operations by being a role model of the standards and behaviors consistent with Tropical Smoothie Cafe’s values and culture.
- Team Development/Management Follow established procedures for providing corrective and positive coaching, and making recommendations for pay rate changes, transfers, hiring, terminations, etc.
- Management– Foster an environment of teamwork. Successfully communicating company changes/focus to the team. Ensuring that employee time records are accurate. Ensuring schedules meet the needs of the business so that a great customer experience is delivered.
- Financial PerformanceEnsure that all revenue is properly recorded, and all cash drawers are reconciled daily. Managing food and labor costs in accordance with established goals
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Tropical Smoothie Cafe Franchise Cost
The total estimated Tropical Smoothie Cafe franchise cost is in the range from $257,500 to a maximum of $560,500 in this financial prediction is included an Initial Franchise Fee of $30,000, cost of the Grand Opening Marketing Program of $10,000, and all other expenses that are necessary to prepare the store for the opening day.
The most significant starting expense will be to prepare the leasehold building according to franchisor requirements. Leasehold improvements cost will go in the range from $143,500 to $260,500 if the owner decides that he want to have a drive-thru, then Tropical smoothie franchise cost will be higher by approximately $40,000
These franchised stores approximately have 1,400 to 1,600 square feet, and the cost for leasing this type of real estate usually goes between $2,000 to $5,000 the exact price will depend on the state where the location is.
Every new investor must know that building preparation will take some time . It will be wise to negotiate with the landlord about reducing renting costs until the new Tropical Smoothie Cafe franchise is not ready to start making a profit to its owner.
List of Tropical Smoothie Cafe franchise costs:
- Initial Fee: $30,000 Veterans have 50% discount
- Grand Opening Marketing Program: $10,000
- Initial Deposits: $1,000 to $17,000
- Working Capital for 3 6 months: $1,000 $53,000
- Estimated Total Investment: $257,500 $560,500
How Much It Cost To Open A Tropical Smoothie Franchise
- Investment: $254,000 $385,000
- Franchise Fee: $15,000 $30,000
$75,000 is required in available capital if you want to become a franchisee. Tropical Smoothie Cafe expects new franchisees to have a net worth of at least $100,000. The low end of the total investment required to open a new franchise is $254,000. $385,000 is the maximum that someone opening a location should expect to invest.
New franchisees pay Tropical Smoothie Cafe a franchise fee of $30,000 for the first Cafe, $20,000 for every additional Cafe, and ,000 for qualified Veterans. This fee covers your training, plans for building out the Cafe, access to the systems, technology, operational support and more. Franchise agreements last for 15 years.
Each Cafe pays 6% toward royalty fees, 3% toward national marketing, and 2% towards local store marketing based on gross sales.
Trainings That Will Be Provided
Tropical Smoothie Café has always believed in setting up their own franchisees for success. They provide different kinds of training which includes: a four-week training program, consisting of two weeks in a nearby Cafe, one week in a classroom setting at their Support Center in Atlanta, Georgia and one week onsite for your Grand Opening.
Franchise Location and size
If you are considering a Tropical Smoothie Cafe franchise, these are some of fees you should take note of
Incentive Referral Program
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Challenges Of Tropical Smoothie Cafe Franchise
Unfortunately, Tropical Smoothie Cafe LLC does not offer financial assistance or any future promise of financial aid. This fact may put a damper on your excitement, however, it is important to remember that opening a TSC outlet is actually less expensive than many other big brand franchises. Since it is relatively smaller than most fast-food restaurants, the franchise and starting fee for Tropical Smoothie Cafe is a bit lower than others.
The franchiser requires a 15-year contract agreement to be signed before opening your first outlet. This means that you are committed to Tropical Smoothie Cafe for well over a decade. Although this agreement may seem lofty, your outlet will surely succeed with the help of ongoing business training from the TSC headquarters. This ensures commitment to the company but can be binding for those who find that this is not for them.
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An additional challenge is the immense time commitment needed for initial business training. Training of about three-four weeks on-site and at the Support Center in Georgia make this on-boarding process long and grueling. After these weeks of classroom and on-site education, an additional ten days will be spent at your outlet location for further learning. None of this training is paid for, however, entering your opening day armed with business knowledge will help you succeed even more than before.